Bitcoin remains near $1,000 today despite a drop in stock futures, and continues to hit $21,000 despite opening just $100 lower and the Nasdaq down 2%.
Ethereum was more bullish, barely falling at the market open, rising further to $1,540 and higher, while Nasdaq edged back up to -1.54% before rising further to -0.63%, while ETH was near $1,600.
Stock Price, October 2022
Makes this an interesting episode as there are concerns over how Bitcoin will react after taking into account its gains.
It appears to have responded by largely ignoring stocks, except to respond to some still-relevant traders when a four-month sideways move suggests there is no longer much correlation.
Especially since the Nasdaq is currently suffering from some missed earnings from tech giants like Google, which partly blames cryptocurrencies.
But bitcoin and ethereum have no such gains on their own. So luck or misfortune for Google doesn’t necessarily translate to Bitcoin not being in the ad business.
While some tech giants are, like Facebook, Twitter, etc., the Nasdaq reflects this, especially since Google is part of the index, which fell 7.85%.
However, the U.S. dollar strength index fell below 110 for the first time since September, opening room for speculation that further losses could be expected.
Bitcoin and DXY tend to be correlated, but correlation doesn’t mean it’s less clear with its causal relationship, which movement leads to the other.
A new study on the effects of M2 money supply in the UK and Japan claims it will affect Bitcoin, noting that “Bitcoin prices have a negative impact on M2.”
This makes it an interesting result, but given the global nature of Bitcoin, it is arguable that both countries are too small to be studied more comprehensively, including at least EUR and USD.
Bitcoin, eth, dxy, oil and Nasdaq prices, October 2022
Another reason for this bullishness could be that Bitcoin has crossed an indicator, the 9, 27 EMA on the 1D chart, which rarely happens.
The breakout was compared to April 2019, and some even to 2015, and the question is, of course, why this metric was exceeded.
A shift in sentiment due to a four-month-long sideways move, capital flight from China, and Bitcoin no longer caring about stocks — and therefore Powell — may be partly to blame.
One wonders if the new British Prime Minister Rishi Sunak, who has expressed his desire to make the UK a cryptocurrency hub, also contributed to the growth. We doubt it, since his plan has long been known, but it could add to everything.
However, it might be more like this meme, which should be somewhat familiar to crypto folks who have been through bear markets before.
Stages of a trader meme
It does get boring, but things can move pretty fast in cryptocurrencies and today there is some excitement that is very evident because they are finally not that boring anymore.
Of course that’s the rest. The rest of the world didn’t get any attention. More importantly, they are dismissing the whole thing:
“The reality is that the current form of cryptocurrencies has become a small asset class that has nothing to do with the scheme of things.”
JPMorgan President Daniel Pinto said in an interview with CNBC. That’s good because we think the whole bank is just Jamie Dimon.
In fact, it’s so irrelevant that the president himself has to say it’s irrelevant, even though some of his bankers may trade cryptocurrencies instead of selling rate cuts when everyone knows their only way out is to go up “hedged” to pensions.
So, did he do it? All this weird green color makes everyone uncomfortable because we’re all nervous about whether it’s going to fall off, but everyone thinks it probably won’t, not right anyway?
who knows. Every bit of help, no matter what, so he can get involved at least once in a while as the Halloween feast draws near.
So enjoy it, only time will tell if holders do it again and if we laugh at bankers again, right after we become totally, totally irrelevant.
Source of information: Compiled from TRUSTNODES by 0x Information.The copyright belongs to the author and may not be reproduced without permission